debeers rough diamond – The Diamond Certification Laboratory of Australia (DCLA)

De Beers latest sale shows diamond demand remains strong

De Beers, the world’s top diamond producer by value, saw sales jump by 18% in the second cycle of 2022 compared to the same period last year, attesting to the industry’s consolidated recovery from the first pandemic-induced shutdowns.

The Anglo American unit sold $650 million of diamonds between February 21 to February 25, down $10 million from the first cycle of the year, but higher than the $550 million it sold in the second cycle of 2021.

De Beers sells its gems through 10 sales each year in Botswana’s capital, Gaborone, and the handpicked buyers known as sightholders generally must accept the price and the quantities offered.

Customers are given a black and yellow box containing plastic bags filled with stones, with the number of boxes and quality of diamonds depending on what the buyer and De Beers agreed to in an annual allocation.

The company said that owing to the restrictions on the movement of people and products in various jurisdictions around the globe, it has continued to implement a “more flexible approach” to selling roughs, which included extending the latest sight event beyond its normal week-long duration.

The miner, which has benefitted from a steady recovery in the diamond market, is said to have hiked prices by about 8% in January. It had already increased the price of its rough diamonds throughout much of 2021 as it sought to recover from the first year of the pandemic when the industry came to a near halt. Most of these hikes, however, were applied to stones bigger than 1 carat.

The strategy granted De Beers a steady recovery during 2021. Its diamond prices rose by 23% in “just over a year,” said Mark Cutifani, CEO of Anglo American in a December presentation.

Russia-Ukraine effect
De Beers may benefit from the sanctions imposed to Russian companies as Moscow-based Alrosa (MCX: ALRS), the world’s top diamond miner by output, is its main competitor.

Alrosa and its chief executive Sergei S. Ivanov were included in the first wave of restrictions announced by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC), which targeted mainly banks and energy firms.

Data from the US Treasury shows Alrosa is responsible for 90% of Russia’s diamond production and 28% of global supply.

De Beers chief executive Bruce Cleaver said the company has been “shocked” and “saddened” by the war in Ukraine, so it will donate $1 million to aid organizations operating in the region and providing support to those affected by the ongoing conflict.

Experts believe that The Kremlin will soon be unable to pay its debts amid increasing international sanctions against Russia.

Credit ratings agency Fitch Ratings has downgraded its view of the country’s government debt, warning a default is “imminent” for the second time this month.

“The further ratcheting up of sanctions, and proposals that could limit trade in energy, increase the probability of a policy response by Russia that includes at least selective non-payment of its sovereign debt obligations,” the agency said.

Moscow has told investors that it will continue to service its sovereign debt but warned that international sanctions imposed on its energy industry could limit its ability and willingness to meet its obligations.

Source: mining.com

Botswana’s Debswana diamond sales jump 73% in first nine months of 2021

Sales of rough diamonds by Debswana Diamond Company jumped 73% in the first nine months of 2021, statistics released by the Bank of Botswana showed on Tuesday, driven by the reopening of U.S. and China’s consumer markets.

Debswana, a joint venture between Anglo American business De Beers and the Botswana government, sells 75% of its output to De Beers, with the balance taken up by state-owned Okavango Diamond Company.

Debswana sales fell by 30% in 2020 as the covid-19 pandemic hit demand while global travel restrictions hurt trading.

Botswana closed its borders for eight months last year in an effort to curb the spread of the virus, effectively locking out foreign buyers from centres such as Mumbai, Antwerp and China, who traditionally travel to Gaborone 10 times a year to view and buy diamonds from De Beers.

Since mid-2020 De Beers has shifted some of its rough viewings to places closer to international diamond centres, such as Antwerp, to cater for customers unable to travel to Gaborone.

According to data published by the central bank, exports of diamonds from Debswana stood at $2.589 billion in the first nine months of the year compared with $1.498 billion in the same period last year.

Botswana makes about 30% of its revenue and 70% of its foreign exchange earnings from diamonds. While it has taken measures to diversify its dependence on a single commodity, diamond sales continue to be its main revenue earner.

De Beers’ sales softened by 4% in the current sales period, which ended last week, as Indian manufacturers closed factories ahead of the Diwali festival, though the company said diamond jewellery demand remained strong in the United States.

Source: mining.com

World’s third largest diamond discovered in Botswana

The diamond firm Debswana has announced the discovery in Botswana of a 1,098-carat stone that it described as the third largest of its kind in the world.

The company’s acting managing director, Lynette Armstrong, presented the stone, which was found on 1 June, to the country’s president, Mokgweetsi Masisi, on Wednesday.

It is the third largest in the world, behind the 3,106-carat Cullinan found in South Africa in 1905 and the 1,109-carat Lesedi La Rona discovered in Botswana in 2015.

“This is the largest diamond to be recovered by Debswana in its history of over 50 years in operation,” Armstrong said.

“From our preliminary analysis it could be the world’s third largest gem-quality stone. We are yet to make a decision on whether to sell it through the De Beers channel or through the state owned Okavango Diamond Company.”

The “rare and extraordinary stone … means so much in the context of diamonds and Botswana,” she said. “It brings hope to a nation that is struggling.”

The minerals minister, Lefoko Moagi, said the discovery of the stone, which is yet to be named but measures 73 by 52 by 27mm, could not have come at a better time after the Covid-19 pandemic hit diamond sales in 2020.

Debswana is a joint venture between Anglo American’s De Beers and the Botswanan government, which receives as much as 80% of the income from sales through dividends, royalties and taxes.

Production at Debswana fell by 29% in 2020 to 16.6m carats and sales fell by 30% to $2.1bn as the pandemic affected production and demand.

Debswana plans to increase output by as much as 38% to pre-pandemic levels of 23m carats in 2021 as the global diamond market recovers with the easing of travel restrictions and reopening of jewellers.

Source: theguardian

De Beers Raises Prices of Larger Diamonds

De Beers increased prices of goods above 2 carats at this week’s sight as shortages of rough coincided with strong polished demand.

Prices rose around 5%, and more in some categories, market insiders told Rapaport News on Monday. Near-gem items also saw significant increases, while prices for other stones under 2 carats were either stable or slightly up.

“They seem to have picked areas where they’ve seen room [for price growth], and they’ve just hiked the prices up,” a source in the rough sector said on condition of anonymity. “For the time being, the market is absorbing it.”

Rough trading has been strong in recent weeks because of reduced supply from the large miners and solid polished sales. The RapNet Diamond Index (RAPI™) for 1-carat diamonds has risen 2.5% since May 1.

Rough above 1 carat has been especially sought-after, with premiums on the secondary market rising while manufacturers look to fill inventory gaps. A backlog of grading submissions at the Gemological Institute of America (GIA) has exacerbated the situation.

The June sight value will be similar to last month’s $380 million as customers snap up the limited goods available at the sale, sources said. Proceeds were higher earlier in the year — peaking at $663 million in January — when manufacturers restocked after the holidays and De Beers had larger volumes available to sell.

“There’s a shortfall in goods,” an executive at an Indian sightholder said Monday. “They’re not able to serve everyone what they’re entitled to.”

Rough demand slumped during the 2020 coronavirus crisis as the global supply chain froze. De Beers chose to maintain prices until August, when it offered deep discounts to encourage sightholders to resume buying. It has since reversed those cuts, gradually bringing prices to above pre-pandemic levels in many categories.

The sight began on Monday and runs until Friday. De Beers was not available for comment at press time.

Source: Diamonds.net

De Beers Taps Into Unexpected Natural Wonders For New Collection

Reflections_of_Nature_by_De_Beers_Motlatse_Marvel_necklace

In celebration of the natural beauty of the countries from which its diamonds are produced, De Beers Jewellers has introduced Reflections of Nature, the venerable house’s latest collection in the stratospheric world of high jewelry.

The dazzling collection features five sets Okavango Grace, Motlatse Marvel, Namib Wonder, Landers Radiance and Ellesmere Treasure with a total of 39 exclusive pieces.

The latter is probably the most unexpected as few laymen would recognize Canada as a source for diamonds. Yet, Ellesmere Island in the Canadian Arctic is the third largest producer of diamonds in the world.

The pieces in this DeBeers set were designed to reflect the island’s glacial beauty and are evocative of the ice and frosted flora of Ellesmere Island, where diamonds were first discovered in 1991. While colored stones are employed throughout the other Reflections of Nature sets, the Ellesmere Treasures are indeed treasures with their all white diamonds.

A UNESCO World Heritage Site, the Okavango Delta in Botswana is inspiration for De Beers’ Okavango Grace set. Recalling the lush wetlands and the fluidity of the delta’s reeds, the set features a color scheme of rough pink, green, brownish pink, purple and grey diamonds suspended in organic strands that move freely with the wearer.

Design of the Namib Wonder set is based on the beauty of the world’s oldest and largest sand dunes found in Namibia’s Namib Desert. Brilliant white and yellow diamonds set the stage for white rough diamonds, which are cap-set allowing them to move more freely and catch the light from every angle.

The spectacular sunrises and sunsets over the peaks and caverns of Motlatse Canyon in South Africa provide the creative cue for the colorful Motlatse Marvel set. Pink, yellow and white diamonds conjure bejeweled sunbursts.

The teaming underwater universe of South Africa’s Landers Reef is suggested in the Landers Radiance multi-colored, multi-cut theme. “A rainbow of white and fancy color diamonds evokes the vibrant colors of corals and fish, shimmering in sunlit waters” is how De Beers’ promotional materials describe this set.

With introduction of the collection, De Beers Jewellers is reaffirming its commitment to environmental conservation through its widespread Building Forever sustainability initiative and the houses’s commitment to its code of best practices principles. That includes conservation of “The Diamond Route,” some 50,000 acres throughout Southern Africa.

Source: papercitymag

De Beers and Alrosa Raise Rough Prices

The two largest diamond miners increased prices at this week’s rough sales as demand improved due to post-holiday restocking and strong trading ahead of the Chinese New Year.

De Beers raised prices by an average of 4% to 5% at its first sight of 2021, while Alrosa’s increases were around 6% to 7%, industry insiders told Rapaport News Monday. Both companies implemented steeper hikes in larger categories than for smaller goods, sources said.

“Alrosa makes sure that prices reflect the actual market trends and a confirmed real demand,” a spokesperson for the Russian miner said. De Beers declined to comment.

The miners have steadily been reversing the prices cuts they made in the second half of last year. De Beers’ price rise was its second in a row, with January prices almost back to pre-pandemic levels, sightholders noted.

The rough market showed momentum in January following a better 2020 holiday season than many had feared earlier in the year. Cutting factories in India raised polished production to full capacity as shortages emerged and retailers restocked, prompting manufacturers to buy rough in large quantities.

Demand rose on the secondary market, with De Beers clients able to make profits of 5% to 7% by reselling goods ahead of the sight. Those premiums declined slightly following the price increase.

“[Polished] inventory levels are the lowest for at least the past seven or eight years,” an executive at a sightholder said. “That’s the reason people are going to be more aggressive in their purchasing,” he continued, adding that some traders foresaw a spike in consumer demand due to government stimulus packages.

Prices at smaller miners’ tenders were higher still — in contrast to mid-2020, when manufacturers could get goods up to 25% cheaper on the open market compared with De Beers and Alrosa boxes. Tender prices fluctuate with the market conditions more than contract-sale prices do, as the smaller rough producers have greater liquidity needs.

Some traders expressed concern that the surge in rough purchases could lead to an oversupply, as Chinese retailers have almost finished preparing their inventories for the upcoming lunar festival on February 12.

“It’s time to go back to business, but it’s no time to push your production to the max and buy rough at any price with the excuse that your factory needs it,” another sightholder argued. “The end of year has been OK, including in the States. There are great expectations for a fantastic Chinese New Year, but the reality is that any Chinese retailer has stopped buying as from this week.”

Amid the uncertainty, Alrosa kept its policy of allowing customers to defer 100% of their allocations in January, noting that it wished to uphold the balance between supply and demand.

De Beers also allowed sightholders to refuse a proportion of their allocations for goods up to around 0.75 carats, while maintaining its standard flexibility — including 10% buybacks — in larger categories.

De Beers’ sight began on Monday in Botswana and runs until Friday, with viewings also taking place in Antwerp and Dubai. Alrosa’s sale started last Friday and continues for a week.

Source: Diamonds.net

De Beers sales rise 12% as diamond demand recovers

De Beers Group announced on Wednesday that sales of rough diamonds rose more than 12% in the latest sales cycle, as demand improves on the back of easing covid-19 restrictions and ahead of the holiday season.

Sales of $450 million between November 2 and November 16 were higher than the $400 million a year earlier, but declined from the $467 million in the eighth cycle between September 21 and October 9.

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“Steady demand for rough diamonds continued in the ninth sales cycle of the year, reflecting stable consumer demand for diamond jewellery at the retail level in the US and China, and expectations for reasonable demand to continue throughout the holiday season,” De Beers CEO Bruce Cleaver said in a media release.

“However, the resurgence of covid-19 infections in several consumer markets presents ongoing risks.”

The company has continued to implement a more flexible approach to sales during the year, as a result of restrictions triggered by the pandemic.

It has also cut prices of its stones, sometimes by almost 10% for larger diamonds, in an effort to spark sales.

On Tuesday, rival Petra Diamond Petra reported a 36% fall in revenue and a net loss of $223 million for the year ended June 30, as the pandemic deepened the company’s financial woes.

Source: mining.com

De Beers sales show steady recovery in diamond market

De Beers, the world’s largest diamond producer by value, said on Wednesday that its latest sale of roughs yielded 40% more revenue than the seventh cycle, which already was more successful than the previous event.

The Anglo American unit, which sells diamonds to a handpicked group of about 80 buyers 10 times a year at events called “sights”, sold $467 million worth of rough diamonds in the eighth cycle, compared to $320 in the previous one.

The results bring De Beers’ total revenue from rough diamonds in the second half of 2020 to more than $900 million.

De Beers’ chief executive Bruce Cleaver said that while the demand increase was encouraging, it was too early to be sure of a sustained recovery in trading conditions.

“We continue to see a steady improvement in demand for rough diamonds in the eighth sales cycle of the year, with cutters and polishers increasing their purchases as retail orders come through ahead of the key holiday season,” Cleaver said in the statement.

The strong figures are further evidence of improving demand for rough diamonds, according to said BMO analyst Edward Sterck. He warned, however, that there is a significant accumulation of upstream diamond inventories, which could suppress the recovery if liquidated too soon and too quickly.

“Maintaining good diamond prices through the recovery will depend upon the pace at which the inventory is unwound, with De Beers and Alrosa holding the keys to the bulk of this inventory,” Sterck wrote in a note to investors.

The analyst also said the fact De Beers only provided a revenue figure meant it was unable to gauge how prices were trending.

Lower prices, more flexibility
De Beers has continued to implement a more flexible approach to sales during the sixth and seventh sales cycles of the year, as a result of restrictions triggered by the pandemic.

The usual week-long sight holder events have been extended towards near-continuous sales.

It has also cut prices of its stones, sometimes by almost 10% for larger diamonds, in an effort to spark sales.

Before the price reduction, De Beers had made major concessions to their normal sales rules — allowing customers to renege on contracts and view diamonds in alternative locations.

Along with Russia’s Alrosa, the world’s top diamond producer by output, it has also axed supply of roughs to the market, but built up their own stockpiles.

The diamond giant noted that despite ongoing efforts, it expected it would take “some time” to get back to pre-pandemic levels of demand.

De Beers and Alrosa’s view is shared by many in the industry. India, which polishes about 90% of the world’s rough diamonds, expect the slump in exports to be worse this year than in 2008.

Colin Shah, chairman of the Gem & Jewellery Export Promotion Council, told Bloomberg News on Wednesday that overseas sales of cut and polished diamonds may slump 20% to 25% in the year ending March from $18.66 billion last year.

Source: mining.com